US corn export sales last week more than doubled from the previous week's two-month low as a drop in prices sparked better demand, although sales were mostly to regular US corn buyers, traders said. The US Agriculture Department said net sales of US corn in the week ended March 11 totalled 747,600 tonnes for shipment in the 2009/10 marketing year which ends on August 31.
Japan and South Korea bought more than 400,000 tonnes each while Taiwan bought 193,300 tonnes and Mexico bought 110,000 tonnes, according to USDA data. "The lower price was a competitive advantage for the US," said Jason Roose, commodity analyst and vice president of US Commodities.
US corn futures fell to a one-month low last week. Soybean export sales rebounded last week from the prior week's net decline, helped by new-crop soybean sales to China, the world's top soybean importer. The previous week's export sales results were the worst in eight years amid large cancellations of sales to China.
USDA said net soybean export sales in the week ended last Thursday totalled 739,100 tonnes, well above estimates for 150,000 to 250,000 tonnes. That total included 525,000 tonnes in sales for shipment in the 2010/11 marketing year, which begins September 1.
China was the top buyer in the week with purchases of 9,100 tonnes of old-crop soybeans and 390,000 tonnes of new-crop. The surprisingly strong soybean sales had little impact on futures prices on Thursday as the market was down slightly on profit-taking and commercial hedge selling after Wednesday's rally.
"It shows that China will still be buying US beans. They're getting positioned for the future but I don't think you can make a bullish case out of the sales," one cash-connected trader said. US wheat export sales last week were slightly above the range of forecasts at 439,300 tonnes. Traders had expected sales between 300,000 and 425,000 tonnes. Japan, the top market for US wheat, was the largest buyer with purchases of 81,900 tonnes. The Philippines bought 50,000 tonnes in the week and Taiwan bought 49,200 tonnes.
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